Can someone please explain..

[LisaContractorUmbrella]

Bitcoins. You are a clever lot and I need to understand this Bitcoin in the UK: HMRC suggests bitcoins are 'taxable vouchers'

We seem to be entering the realms of existential taxation

[Platypus]

Bitcoin Explained on Vimeo

[cojak]

“I have heard anecdotal evidence of at least one bitcoin trader in the UK having received a VAT demand from HMRC, relating to bitcoin they have sold.

This is one of the key things that we have been addressing with HM Treasury. It obviously stems from a misunderstanding of what bitcoin is and hopefully can be remedied fairly easily.”

I didn't think that guy was dumb, but he speak like a hopeless optimist, or is hopelessly naive, or is just hopeless.

[DodgyAgent]

. You are a clever lot

Thanks

[LisaContractorUmbrella]

Bitcoin Explained on Vimeo

Thanks So, if I understand correctly, very clever people who understand how crack complex algorithms are making virtual money which has, somehow, gained real value and bitcoins are now being traded online??

[DodgyAgent]

Thanks So, if I understand correctly, very clever people who understand how crack complex algorithms are making virtual money which has, somehow, gained real value and bitcoins are now being traded online??

I understand how to take a percentage of what clever people earn, which makes me cleverer than them

[MyUserName]

Thanks So, if I understand correctly, very clever people who understand how crack complex algorithms are making virtual money which has, somehow, gained real value and bitcoins are now being traded online??

Seems pretty much it. It reminds me a little of when people started using on line money in things like World of Warcraft to pay for actual real life things.

[Ticktock]

Thanks So, if I understand correctly, very clever people who understand how crack complex algorithms are making virtual money which has, somehow, gained real value and bitcoins are now being traded online??

Close. Initially, it was the clever people got into it early.
Then, it was more like a mixture of some clever people, and a bunch of kids with PCs.
Nowadays it's more likely to be people who already have money who will make any, as bigger players are using dedicated machines to do the work at faster speeds, so stand a higher chance of taking the virtual money - there can only be 1 winner of the virtual money (although this can be a syndicate). The biggest issue facing miners now (people working to solve algorithms and "win" the bitcoins) is balancing the cost of power to run their machines against the potential gains from "winning" the prize.

It's more and more difficult to actually make anything now, both in terms of inflation of the value of bitcoins, and in terms of actually getting any (unless you buy them or allow yourself to be paid in them). In short, you install a bit of software which automatically crack algorithms, and stand a chance of making virtual money, etc. Whoever actually solves the algorithm first takes the prize - there is no award for having participated or contributed to the solution, you could do 99.9% of the work and walk away with nothing.

[Old Greg]

Thanks

You are special, Dodgy.

[LisaContractorUmbrella]

I understand how to take a percentage of what clever people earn, which makes me cleverer than them

Yeah you are Dodgy searches fruitlessly for head patting smiley